Justia U.S. 5th Circuit Court of Appeals Opinion Summaries

BP Corporation North America Inc. (“BP America”) a Defendant-Appellee in this action, acquired Standard Oil of Ohio (“Sohio). BP America converted the Sohio Plan into a new plan called the BP America Retirement Plan (the “ARP”). The ARP was also a defined benefit plan that retained the formula used by the Sohio Plan to calculate its members’ pension distributions. BP America converted the ARP into the BP Retirement Accumulation Plan (the “RAP,” the conversion from the ARP to the RAP as the “Conversion,” and the date of the Conversion as the “Conversion Date”), the other Defendant-Appellee in this action. Plaintiffs-Appellees, two Sohio Legacy Employees, (the “Guenther Plaintiffs”) filed a class action complaint against the RAP and BP America.   Four years after the Guenther Plaintiffs filed their original complaint, Movant-Appellant, along with 276 other individuals (the “Press Plaintiffs”) moved to intervene in the Guenther Action “for the purpose of objecting” to the magistrate judge’s recommendation. Press Plaintiffs contend that the certified class in the Guenther Action inadequately represents their interests, and therefore, they have a right to intervene in this case.   The Fifth Circuit affirmed the district court’s ruling denying the intervention. The court held that the Press Plaintiffs cannot demonstrate that their interests diverge from those of the Guenther Plaintiffs in any meaningful way. Further, the Press Plaintiffs did not identify a unique interest of their own, they are unable to specify how a determination in the Guenther Action could have a future detrimental preclusive effect. The court wrote it is satisfied that the Press Plaintiffs will be adequately represented. View "Guenther v. BP Retr Accumulation" on Justia Law

Appellant in his capacity as Litigation Trustee for the Erickson Litigation Trust, appeals the dismissal of his avoidance and recovery claims under the bankruptcy laws. In broad terms, these claims seek avoidance of settlement releases approved in Delaware state court, as well as two payments related to Erickson Air-Crane, Inc.’s acquisition of Evergreen Helicopters, Inc. (EHI) (the “Evergreen Transaction”).   The Fifth Circuit affirmed the dismissal of the claims relating to the settlement releases and reversed in part the dismissal of the payments relating to the Evergreen Transaction itself. The court concluded that consistent with Besing and Erlewine, there was reasonable equivalence as a matter of law. The Delaware settlement “should not be unwound by the federal courts merely because of its unequal division of [settlement proceeds].” Further, the court wrote that Appellant’s attempt to attack the Delaware releases as actually fraudulent transfers also fails. The court wrote it saw no error in the lower court's conclusion that Appellant failed to adequately plead actual fraud, and his arguments on appeal do not convince the court otherwise. Moreover, the court found that acting in his specific capacity, Appellant is not enjoined by the Delaware settlement from asserting creditor claims that arose only under the Bankruptcy Code. View "Ogle v. Morgan, et al" on Justia Law

The Fifth Circuit affirmed the district court’s order denying Klairmont Korners, L.L.C. (“Klairmont”) claim that a debtor’s decision to reject a commercial lease pursuant to 11 U.S.C. Section 365 should not receive deference under the business judgment rul Klairmont Korners, L.L.C. (“Klairmont”) appeals a district court order denying its claim that a debtor’s decision to reject a commercial lease pursuant to 11 U.S.C. Section 365 should not receive deference under the business judgment rule because of “bad faith, whim, or caprice” inherent in a third party’s negotiations with Klairmont.   The Fifth Circuit affirmed. The court explained that Klairmont’s contentions fail under this court’s own standard for overcoming the business judgment rule, as well as the “bad faith” test Klairmont encourages us to adopt. The court explained that Klairmont’s position is untenable, even under the test it proposes the court adopt from another circuit, under which courts should not defer to a debtor’s decision under Section 365 that is “the product of bad faith, or whim, or caprice.” Klairmont misunderstands this standard, urging the court to hold that any bad faith involved in the bankruptcy proceedings should prompt a bankruptcy court to decline a debtor’s decision regarding an executory contract. That is not the test these other courts have adopted. Klairmont will not find relief in asserting that the debtor’s decision deserves no deference under the business judgment rule.     . View "Klairmont Korners, L.L.C." on Justia Law

In 2012 the Secretary of the Department of Homeland Security (DHS) announced the Deferred Action for Childhood Arrivals (DACA) program. Eight states and the Governors of two states, led by Texas, have challenged DACA’s validity. In ruling on competing motions for summary judgment, the district court held that the DACA Memorandum violates procedural and substantive requirements of the Administrative Procedure Act (APA). The district court vacated the DACA Memorandum and remanded to DHS for further consideration but temporarily stayed that vacatur as it applies to current DACA recipients. The district court further ruled that DHS may continue to accept new and renewal DACA applications but enjoined DHS from approving any new DACA applications.   The Fifth Circuit affirmed the district court’s judgment in part but remanded to the district court rather than DHS in light of a final rule promulgated by DHS in August 2022. The court explained that it affirmed the district court’s judgment with regard to the procedural and substantive provisions of the DACA memorandum.   There is evidence that if DACA were no longer in effect, at least some recipients would leave, and their departure would reduce the State’s Medicaid, social services and education costs for those individuals and their families who depart with them. Especially with the benefit of special solicitude, Texas has established that rescinding DACA would redress its harm. Accordingly, Texas has demonstrated standing based on its direct injury. Further, the court held that because DACA did not undergo notice and comment, it violates the procedural requirements of the APA. View "State of Texas v. USA" on Justia Law

Petitioner a native and citizen of Cameroon, petitions for review of the Board of Immigration Appeals (“BIA”) decision affirming the Immigration Judge’s (“IJ”) denial of his claim for protection under the Convention Against Torture (“CAT”). Petitioner claimed the BIA failed to consider country conditions evidence when separately analyzing his CAT claim.
The Fifth Circuit agreed with Petitioner and granted the petition for review and remanded for further consideration of the CAT claim. The court concluded that the BIA’s statement in this case “raises too great a concern that the BIA did not adequately consider the evidence before it.” Petitioner plainly pointed to other evidence to support his CAT claim, i.e. the country conditions evidence determination is not necessarily dispositive of a CAT claim. Because the BIA incorrectly found no record evidence about relevant country conditions, Petitioner did not receive “meaningful consideration of the relevant substantial evidence supporting” his claims. View "Ndifon v. Garland" on Justia Law

T.C.’s estate and the passengers of T.C.’s car sued an Arlington police officer and the City of Arlington for the use of excessive force during a traffic stop in violation of the Fourth Amendment. The district court dismissed the passengers’ claims, finding that they could not bring claims as bystanders, and granted summary judgment to the police officer and the City after determining that the police officer was entitled to qualified immunity.   The Fifth Circuit affirmed the dismissal of the passengers’ claims and vacated the grant of summary judgment on T.C.’s claims and remanded it to the district court for further proceedings consistent with this opinion. The court reasoned that here, under T.C’s account, he was shot while he was held in a chokehold in a parked car while evading arrest for several confirmed misdemeanors and an unconfirmed felony parole violation. The police officer was on notice that the use of deadly force is objectively reasonable only where an officer has “a reasonable belief that he or the public was in imminent danger . . . . of death or serious bodily harm.” Again, the officer’s alleged belief that T.C. had a gun was not reasonable, nor was his belief that a parked car posed a danger to himself, the passengers, or the other officers standing on the side of the car. Therefore, the district court erred in granting summary judgment to the officer and perforce dismissing the City. However, because there was no unreasonable use of force against the passengers, no constitutional injury occurred. View "Crane v. City of Arlington" on Justia Law

Petitioner petitions for review of the dismissal of her application for asylum and withholding of removal. She claimed abuse by a former boyfriend and gang member, but the immigration judge (“IJ”) denied her application because she did not find Petitioner credible. The Board of Immigration Appeals (“BIA”) affirmed the IJ’s credibility finding and also concluded Petitioner did not raise a claim under the Convention Against Torture (“CAT”) before the IJ.   The Fifth Circuit denied the petition. The court explained that the IJ acted squarely within her authority in finding Petitioner’s account not credible and denying her claims accordingly. Because nothing in the record supports a conclusion “that no reasonable factfinder could disbelieve” Petitioner, the court wrote that it cannot disturb the IJ’s credibility determination on appeal. Next, the court wrote that Petitioner twice chose, through counsel, not to check boxes expressly asking whether she sought CAT relief. By not checking that box, Petitioner plainly conveyed she did not “want to apply for withholding of removal under the Convention Against Torture.” Accordingly, the BIA did not err in concluding Petitioner failed to raise a CAT claim. View "Cordero-Chavez v. Garland" on Justia Law

Plaintiff sued her school district under Title VI of the Civil Rights Act of 1964, alleging racial discrimination by other students. After a bench trial, the district court ruled for the school district. Plaintiff argued the district court committed three reversible legal errors in finding the District was not deliberately indifferent.   The Fifth Circuit affirmed. The court explained that the magistrate judge recommended granting the District summary judgment “so far as Plaintiff attempts to couch her Title VI claim on [the District’s] alleged failure to comply with its own policies and regulations[.]” Plaintiff did not object to this recommendation, which the district court adopted. Accordingly, the most Plaintiff could argue on appeal is that the district court committed plain error in adopting this conclusion. But, the court wrote, that Plaintiff does not even raise the possibility of plain error. Nowhere in her briefing, much less the portion devoted to the District’s policies, does she argue that the district court committed plain error. This argument is therefore forfeited in its entirety.   Further, the court explained that a Title VI defendant is not deliberately indifferent where it actively responds to harassment, provided that its response is not pretextual or knowingly ineffective. Here, Plaintiff failed to explain why any of the District’s particular responses were deficient. Thus, the court found no error much less clear error, in the court’s findings that the District was not deliberately indifferent with respect to any of these incidents, whether considered singularly or collectively. View "Sneed v. Austin Indep School Dist" on Justia Law

Plaintiff, a Texas prisoner, appealed the summary judgment dismissal of his 42 U.S.C. Section 1983 claim that a correctional officer at the Allred Unit of the Texas Department of Criminal Justice (TDCJ), confiscated Plaintiff’s religious materials in violation of the Free Exercise Clause of the First Amendment.   The primary issue on appeal is whether confiscation of Plaintiff’s materials violated Plaintiff’s constitutional rights under the Free Exercise Clause. The Fifth Circuit affirmed the district court’s ruling. The court explained that Plaintiff conceded that he did not store his religious materials as required by AD-03.72. And the Fifth Circuit Court has previously indicated that TDCJ policies regarding the storage of personal property do not infringe on a prisoner’s right to free exercise of religion. Evaluating AD-03.72 in view of the relevant considerations, the confiscation of Plaintiff’s religious materials was reasonably related to a legitimate penological objective.   The impact of accommodating Plaintiff’s constitutional rights on other prisoners, guards, and prison resources could be great, given the management and safety concerns underlying the policy. Moreover, even if the confiscation had violated Plaintiff’s constitutional rights, the district court correctly found that the correctional officer was entitled to qualified immunity because his actions were objectively reasonable. View "DeMarco v. Bynum" on Justia Law

Appellant Advanced Indicator and Manufacturing, Inc. claims its building was damaged by Hurricane Harvey’s winds. Advanced’s insurer, Acadia Insurance Company, determined that the damage to the building was caused by poor maintenance and routine wear and tear. When Acadia denied Advanced’s claim, Advanced sued. Advanced filed a motion to remand the case to state court   The district court granted Acadia’s motion and granted summary judgment on Advanced’s extra-contractual claims. The Fifth Circuit affirmed the district court’s denial of the motion to remand, reversed the grant of summary judgment on Advanced’s claims, and remanded the matter to the district court.   The court explained that Advanced’s argument is unavailing because it fails to consider Flagg’s command that “the district court must examine the plaintiff’s possibility of recovery against that defendant at the time of removal.” At the time of removal, then, it would have been proper for the district court to find that “there is no possibility of recovery by [Advanced] against an in-state defendant.” Accordingly, the differences between Sections 542A.006(b) and 542.006(c) are not material as long as the insurer elects to accept liability for the agent before removal. The court held that summary judgment was not warranted on Advanced’s breach of contract claim given the evidence Advanced has put forth. This conclusion requires the reversal of the district court’s dismissal of Advanced’s other claims. View "Adv Indicator v. Acadia Ins" on Justia Law